Debt-to-Equity Ratio Calculator

⚖️ Assess Financial Leverage with Our Debt-to-Equity Ratio Calculator

Understanding a company’s capital structure is essential for evaluating its financial health and risk profile. One of the most widely used metrics for this purpose is the Debt-to-Equity (D/E) Ratio — and now, you can calculate it instantly using our D/E Ratio Calculator.

🔍 What is the Debt-to-Equity Ratio?

The Debt-to-Equity Ratio measures how much debt a company is using to finance its assets relative to the value of shareholders’ equity. It’s a key indicator of financial leverage and risk.

D/E Ratio = Total Liabilities / Shareholder’s Equity

• A high D/E ratio may indicate that a company is heavily reliant on debt, which could be risky in volatile markets.
• A low D/E ratio suggests a more conservative capital structure, with less financial risk.

This ratio is especially important for lenders, investors, and analysts assessing a company’s ability to meet its obligations.

🧮 How to Use the D/E Ratio Calculator

Just enter:

• The company’s Total Liabilities
• The Shareholder’s Equity

And the calculator will instantly show you the Debt-to-Equity Ratio.

This tool is ideal for:

• Financial analysts preparing reports
• Investors comparing companies
• Students learning financial metrics

📊 D/E Ratio in Action

Let’s say a company has:

• Total Liabilities: ₹1,00,00,000
• Shareholder’s Equity: ₹50,00,000

Then the D/E Ratio would be:

₹1,00,00,000 ÷ ₹50,00,000 = 2.00

This means the company has ₹2 of debt for every ₹1 of equity — a sign of high leverage.

💡 Final Thoughts

The Debt-to-Equity Ratio is a powerful tool for evaluating a company’s financial structure and risk exposure. It’s especially useful when comparing companies within the same industry or assessing creditworthiness.

Use our calculator to analyze leverage quickly and confidently — and add it to your toolkit for smarter financial decisions.